(Updated with news CGG)
PARIS, Dec. 14 (Reuters) – Technip announced Sunday abandon bid on CGG, the French oil services group stating that discussions with competitor had “been able to reach any agreement.”
On November 20, Technip had publicly announced that approached CGG for a purchase of the company for 1.47 billion euros in the part of a bid in cash.
His target, specializing in geophysical services and equipment, had immediately rejected the terms of the proposal.
At the end of last week, the CGG stock had fallen sharply following news reports saying that the State was not satisfied by a merger with Technip.
The State is indirectly present in the capital of both companies through bpifrance, which holds about 7% and 5.2% of CGG Technip according to Thomson Reuters data.
Specializing in oil and gas equipment, Technip had said Nov. 20 that he proposed 8.3 per share CGG and his project was based on the integration of reservoir operations and data processing of the company, and its seismic equipment.
Following this announcement, the CGG title jumped 22% in one session. But the course, which had briefly surpassed the offer price Technip early December, closed Friday at 6,906 euros, showing only a gain of 6% compared to its level before the announcement of offer.
“On 10 November 2014, Technip has approached the Board of Directors of CGG, with a view to make a public offer for CGG and sought to establish a constructive dialogue with CGG order analyze the project, “recalls Technip in a statement.
Following the reaction CGG this approach, Technip has presented a number of alternative options to a public offering, with due consideration to usual to consider the social, strategic and financial. However, discussions on these options do not reach any agreement. “
” In these circumstances, Technip informs the market that it does not intend to file a tender offer Purchase of CGG, “adds the group.
Technip shares, which ended Friday at 46.22 euros, fell by over 24% since the announcement of its approach to CGG.
In a statement, said CGG take note of the decision of Technip.
“After the unsolicited offer Technip dated November 10, CGG remained open to dialogue and studied all proposals Technip for the interests of its shareholders, customers and employees. The Board of Directors of CGG considered none of the proposed alternatives are possible to create value for the company and all its stakeholders. “(Benoit Van Overstraeten for the French service)
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